The crypto market is slowly but surely recovering after strong corrections. It’s been revealed that the Cardano creators Charles Hoskinson said that meme coins reached a market cap of billions of dollars despite the fact that they lack user utility.
Crypto projects should be evaluated based on mission and vision
The CEO of the blockchain tech firm responsible for the development of Cardano, Input Output Hong Kong (IOHK), said that crypto projects should be evaluated based on their mission and vision.
“… we have Dogecoin (DOGE), Shiba Inu (SHIB). They have accumulated technically tens of billions of dollars of value but there’s no real user utility outside of the fact that there’s a social network behind them.”
He continued and said:
“But the adherents of these things will argue that these social networks themselves represent the value and therefore, that’s all you need.”
He also noted the following:
“Old school people like me say you have to have real fundamentals, real transactions, real commerce, a potential for user utility, a path to these things and a view of how these things are going to work in the world, change the world.”
He also explained that the extremely high returns of some crypto assets have resulted in unrealistic expectations in the industry.
“Every year, we will see thousands of cryptocurrency-related projects launching around the world without end, regardless of economic conditions. It’s also created a distortion about our expectations of return. And many regulatory bodies have warned people about this.”
He said that math does not work that way.
“But it is unrealistic if there’s a 100x or something to expect that to happen every single year. It just can’t. Math doesn’t work that way.”
Hoskinson also said that unrealistic expectations have bred impatience in the crypto industry.
Stay tuned for more relevant news and make sure to keep your eyes on the crypto market.